Italian chocolate producer Ferrero has agreed to acquire Thorntons, in a cross-border deal that values the British chocolate maker at around $177.7m.
Ferrero will make the transaction through its subsidiary Ferholding, which has been created earlier this month exclusively for this deal.
The acquisition is in line with Ferrero's aim to expand in the UK, where the company has been operating since 1966.
The country is said to be the biggest confectionery market in Europe.
Ferrero plans to identify synergies post merger through a strategic review of Thorntons.
Thorntons manufactures, retails, distributes, and sells confectionery and other sweet foods. It employs 4,000 people. It offers chocolate, toffee, fudge and wedding products through 260 owned stores and 175 franchises.
Ferrero CEO Giovanni Ferrero said: "This transaction brings together two highly complementary businesses, but more important, it unites two companies that share the same passion for growing brands and a proud heritage, drive and culture built upon their family foundations.
"We delivered our best ever results in the UK in 2014, giving us confidence that now is the right time to broaden our roots in this important market," added Ferrero.
Thorntons shareholders with nearly 30% stake have already agreed to sell their shares to Ferrero.
Ferrero intends to double its $9bn annual revenue by early next decade.
Following Ferrero's bid, Thorntons shares increased by over 42%.
Image: Thorntons manufactures and sells confectionery and other sweet foods in the UK. Photo: courtesy of Stratford490 / Wikipedia.
